If you're not familiar with Warren, here's a briefer on her tense relationship with Wall Street: She's a former Harvard Law School professor, former White House official who served as a special advisor to the Secretary of the Treasury where she helped create the Consumer Financial Protection Bureau.

In doing so, Warren made plenty of adversaries particularly among the Republican party where the CFPB is viewed as a burdensome Wall Street regulator.

Wall Street's biggest banks they likely haven't forgotten a $20 billion suggestion Warren made in September 2011. Back then, Warren and her newly created CFPB produced a 7-page report for the 50 state Attorneys Generals who were leading the investigation on improper foreclosure procedures by Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial. In the report, the CFPB said banks dodged more than $20 billion in expenses between 2007 and 2010 by taking shortcuts when servicing troubled home loans.

At the time the report was presented the banks and AGs were engaged in settlement talks, and there were reports that the financial firms would cough up somewhere between $5 billion and $30 billion. When Warren presented her report she balked at the $5 billion figure saying it “would seem too low” considering “rough estimates suggest the largest servicers may have saved more than $20 billion through under investment in proper servicing during the crisis.”

Now, just a year later, Warren claims victory over moderate Republican and incumbent Senator Scott Brown in the Massachusetts race; and more notably for Wall Street, she's likely to get a seat on a Banking Committee.

As the LA Times points out, now that Barney Frank is retiring and Chris Dodd is already gone Elizabeth Warren is chief defender of Wall Street reform.

"At exactly the time that big banks don’t want more oversight, or another potentially activist regulator, that’s what they’re getting," says hedge fund manager Shah Gilani. "Not only will Momma be protective and nurturing with her offspring, she will champion a much harder stare-down and most frighteningly to the banks, a possible break-up frontal assault on them while their underbelly is being further exposed."

How's that going to sit with banks? Well, if their performance today is any indication then not very well. Bank of America shares are getting rocked sinking 6%. The same is true of Goldman Sachs shares. Citi shares are down 5% while Morgan Stanley shares are down a whopping 8%.

JPMorgan Chase is down 4.5%. CEO Jamie Dimon may be particularly interested in watching Warren's moves. Warren called for Dimon's resignation as a director at the Federal Reserve Bank of New York after his bank's embarrassing $6 billion trading loss.

He didn't take her up on the suggestion but it didn't stop Warren from continuing her crusade against Dimon and Wall Street. After the JPM chief appeared before the Senate Banking Committee over the trading loss Warren issued a statement saying, "If there is one thing we learned at the hearing, it’s that Wall Street still doesn’t get it. Jamie Dimon and his defenders have spent millions lobbying for delays, loopholes and exceptions to block any real accountability on Wall Street -- and they’re still at it."

Notes Gilani, "The ascent of Elizabeth Warren spells further declines for big banks. From her new lofty perch she will be able to feather the nest of her offspring the CFPB."

Wall Street's problems don't end with Warren though. Dennis M. Kelleher president and CEO of Better Markets, a non-profit organization that focuses on financial markets, says the industry has been dealt a crushing defeat.

"Wall Street put hundreds of millions of dollars into defeating Warren, Obama and financial reform. They went all in. Today they have a much bigger problem," Kelleher says.